Customs Asymmetry and its Consequences for European Solar Industry

The paper examines the customs asymmetry in the European Union that makes it difficult to manufacture photovoltaic modules locally: while finished PV panels are exempt from customs duties (0%), key components are subject to duties of up to 7.5% and additional anti-dumping measures on imports from China. This arrangement increases costs for European manufacturers, reinforces the dominance of imported products (more than 90% of installed modules) and contributes to the steep decline in domestic production of solar cells and wafers, which now covers less than 2% of needs. The paper examines in detail the historical safeguard measures (between 2013 and 2018), current market indicators, the impact on competitiveness, job losses and the tensions between the protection of domestic industry and the EU's climate ambitions. The final section offers proposals to address these discrepancies that could ensure a balanced transition to green energy and greater energy independence.